Wertschöpfungskette

What is the value chain?

The value chain describes the complete sequence of activities through which a raw material or input is gradually transformed into a marketable product or service. Each stage adds a defined amount of value – whether through processing, transport, storage, quality inspection or customer service. The concept originates from Michael Porter's work on business analysis, but in practice it is applied well beyond the boundaries of individual companies, encompassing external suppliers as well as distribution partners and the end customer.

A typical distinction is made between primary activities – namely inbound logistics, production, outbound logistics, marketing and service – and supporting activities such as procurement, technology development, human resource management and company infrastructure. In intralogistics, the focus is primarily on primary activities, as goods receipt, storage, picking and dispatch directly affect throughput times, inventory levels and service levels.

Relevance for logistics and supply chain

For logistics and planning managers, the value chain is above all an analytical framework: it helps to identify bottlenecks, redundancies and unnecessary buffers. Having visibility across the entire chain enables more targeted decisions about where automation, digitalization or a restructured supplier base offer the greatest leverage.

• Transparency across all stages is a prerequisite for reducing inventories without jeopardizing delivery capability.
• Bottlenecks can often only be reliably located when data from production, warehousing and transport are evaluated together.
• Resilience – the ability to absorb disruptions – depends on which links in the chain are critical and how quickly alternatives can be activated.

What matters in the analysis?

A meaningful value chain analysis begins with a clear definition of system boundaries: which stages are being examined, and which suppliers and service providers are included? Material and information flows are then mapped together, because delays in the flow of information are often just as costly as physical bottlenecks.

Particular attention should be paid to interfaces between organizational units or companies, as responsibilities are often unclear there and data can be lost. Tools such as Value Stream Mapping, as well as modern supply chain visibility platforms, can make these gaps visible. The extent to which external partners can be included in such an analysis varies considerably depending on the vendor and is strongly influenced by contractual agreements and willingness to share data.

The value chain should be distinguished from the concept of the value-adding process: the latter describes specific operational procedures within a single stage, whereas the chain depicts the overarching, cross-stage context.